Confirmed Trades
29 July
$4.27/gal DDP for 20,000 bbl, September loading
$4.295/gal DDP for 20,000 bbl, August loading
$4.31/gal DDP for 10,000 bbl, August loading
$4.30/gal FOB for 20,000 bbl, August loading
25 July
$4.10/gal FOB for 20,000 bbl, August loading
26 July
$4.10/gal DDP for 20,000 bbl, August loading
$4.10/gal DDP for 20,000 bbl, August loading
$4.14/gal DDP for 20,000 bbl, August loading
27 July
$4.19/gal FOB for 20,000 bbl, August loading
$4.20/gal FOB for 20,000 bbl, August loading
$4.20/gal FOB for 20,000 bbl, August loading
US benzene up as Tropical Storm Don and contract settlement nears
US benzene spot prices continued on an upward path during the week ended 29 July, on the back of short cover positions, increased demand from Asia, lower benzene production rates, and the impact of Tropical Storm Don in the Gulf of Mexico.
Some trade sources also attributed the increase earlier in the week to position taking ahead of the August benzene contract settlement.
Meanwhile, traders in Asia attributed the increase in US benzene to a potential decrease in inventories during the third quarter, as there have been fewer exports from Asia in June-July.
With July coming to a close, prompt timing shifted to August delivery by Friday.
Prompt benzene spot prices began the week at $4.08-4.12/gal FOB on Monday, with one July trade confirmed within the range.
Prompt benzene levels were gradually discussed higher the following day at $4.12-4.14/gal FOB, after a few trade confirmed at lower prices.
By Thursday, prompt benzene traded at $4.20/gal FOB for August delivery.
On Friday, prompt benzene spot levels discussed at $4.13-4.23/gal FOB early in the day, but spiked to $4.29-4.31/gal FOB in the afternoon.
Trade sources said the afternoon increase was driven by tight inventory positions.
In forward month activity, September traded midweek at $4.14/gal DDP. By Friday, September spot prices were discussed at a penny under August levels.
In contract discussions, US August benzene contracts were confirmed settled at $4.13/gal fob on Thursday, up by 44 cents/gal from July following spot prices higher.
The settlement, which was in line with market expectations, represented the first increase in the benzene contract since May settled up 35 cents/gal to $4.06/gal FOB.
Overseas benzene prices still following US trend
The increase in US prices helped drive the European benzene market higher. Traders there continue to look at shipping product to US. August benzene contracts in Europe also settled higher during the week, gaining €132/tonne.
Benzene prices in Asia were at a three-month high during the week, following stronger prices in downstream styrene and strength in the US markets.
($1 = €0.70)
This week on ( icis.com ):
29/07/2011 18:02 Initial Europe August benzene CP settles up by €132/tonne
29/07/2011 11:26 JX Nippon Oil settles Aug benzene ACP $130/tonne higher
29/07/2011 07:29 Asia benzene hits three-month high on rising prices in US, styrene
29/07/2011 06:27 Japan chemicals output up 3% in June on continued quake recovery
27/07/2011 17:59 US August benzene contract to settle above $4.00/gal - traders
